With the traditional earning way of earning money, we have different options like full-time jobs and freelancing, but the different concerns like trust and past performance. Here, blockchain comes into the picture with the concept of performance tokenization by dNFT. In this article, we have discussed the tokenization concept and how skills can help you earn money by performance tokenization through dNFT.
The talent of the person is beyond any measures but there are various unique talents and general talents that are recognizable by people around. The marketplace for such talents can be created provided they are assured of his/her performance in the future. It is hereby required to have trust that the data shown of the person is original & not fake. This is where we need blockchain in the system. In order to add real market value, tokenization is required.
There are various sectors where such performance or talent tokenization can be created. Few of them can be in the education sector, sports sector & service sector. Educational institutions, sports academies are the places where such a system can be created.
Blockchain technology has become synonymous with data security and transparency. Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system.
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralized database managed by multiple participants is known as Distributed Ledger Technology (DLT).
Non-Fungible Tokens as an additional layer of security to represent digital proof of authentication and ownership over physical codes and items. A non-fungible token (NFT) is a special type of cryptographic token which represents ownership of something unique.
Non-fungible tokens are not interchangeable. They are uniquely identifiable and distinguishable during interaction and circulation, unlike cryptocurrencies (like Bitcoin for example), and many networks or utility tokens that are fungible in nature.
Each NFT is different in nature, therefore can be valued differently.
Let’s consider each student studying in the school as Non-Fungible Token(NFT). This NFT is derived from various traits that keep on changing throughout his/her schooling. A few of them can be curriculum activity, research activity, music talent, sports talent, etc. The teachers, professors & evaluators are authorized to determine & mark their performance. These markings are used to calculate the overall traits of the student.
The system is designed to nourish student’s development and at the same time value their talents in the real world by real money.
The calculations of NFT value is based on the scarcity of that trait in the overall market & shows the recommended price tag on NFT overall. For example, if a person is quite good at singing and there are no such singers on the whole premises, it values him/her and becomes valuable. But keep in mind, one cannot fool the system as transactions stating that he/she is good at singing are by various trusted validators and authorities which are transparent in nature. So, real talent receives the real value.
What is dNFT?
dNFTs stands for Distributed Non Fungible Tokens. It is an open-source free standard that provides distributed ownership of NFTs in real-life applications on the blockchain. It offers utility to various industries that require ownership in the form of distribution rights. With blockchain technology, all ownership of the digital assets can be recorded in a trustless environment whether it is bought, sold, leased, or transferred as the owner sees fit for him/her.
Non Fungible Tokens in blockchain are supposed to grant ownership of digital assets to people the same way they have ownership of tangible property in the real world. NFTs have protected copyrights because they are an expression of an idea recorded. However, the NFTs so far created is simply a continuation of the current system of licenses and indisputable title to the property. One can buy and sell the whole NTfs ownership at once by bidding for its price. NFTs ownership can be by one single account only. dNFT intends to change this to multiple owners by allowing fractional ownership.
It presents the concept of distributed ownership of any digital asset (aka Non Fungible Tokens in the blockchain) amongst many parties in the form of shards divided into 100. For simplicity, it can be considered as percentage shares of the NFT. We name such tokens as distributed Non-Fungible Token (dNFT). It holds the properties of NFTs as well as it can be traded as shards in the real world. Each dNFT is validated by the set of validators that act as a trusted entity of the asset.
Why is dNFT required?
Since, every NFT derives its value from traits that are provided by authorities, therefore the requirement of validation becomes important. dNFT provides validators in the system that validate whether NFT traits are created by actual authorities. Like for schools, the validators can be teachers, independent reviewers, coaches, etc.
Also, it provides students with various opportunities to sell ownership of the token by sale, bidding, rent, loan, etc. Different options in ownership transfer allow NFT owners to choose the best case scenario required for him/her.
The marketplace can be created for each NFT that has variable traits as determining factors for its market value. Such markets can be created locally, say within a school, within a class, or within some particular area of service. The top cream (say x% of the whole batch) of NFT holders can generate revenue based on their scarcity and value. This revenue is given by the system to such NFT token owners to motivate them to achieve goals in life. The integration of dNFT makes it more interesting & helps talented individuals to get funds by selling ownership of their NFT. This will help to earn money with skills performance tokenization by dNFT. Hence, making the marketplace to attract & motivate people based on their talent & performance.
So, as the concluding statement, we can say there is a lot going on in markets in tokenizing various sectors. It’s the right time to be optimistic about the future of the tokenization of talent & performance.
You can find more about dNFT & its application in other use-cases in the dNFT whitepaper.
Read more to know dNFT: